Volume 2 | November 1, 2017
Insights-Trends-Opinions
I am thrilled with the response from last weeks first ever edition of National Accounts Weekly! Keep your thoughts and recommendations coming!

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I hope you enjoy this issue of National Accounts Weekly!
Hargraves on working with the buyer of today and tomorrow...
  “The person that was hired when [the IDN] had $30 million in supply spend (or even $300 million) is not the person who controls $2 billion in all non-labor expense. The caliber of the supply chain person is changing.”

This is so true, what worked in 2010 or 2005 will not work today but so many suppliers have not changed anything!

David Hargraves articulates it as well as anyone I know. All suppliers would be wise to heed his advice on how to best partner with the Big Buyer of tomorrow!

Hargraves continues “suppliers, distributors, and GPOs are chasing scale to remain relevant and competitive from a negotiation standpoint,” said Hargraves, “but when the providers do it, they’re doing it to survive. It’s really, really fundamentally important.”


Amazon seems to be more interested in devices than it is in Pharmaceuticals

Recent filings seem to suggest Amazon is not interested in distributing "controlled substances."

Did CVS bid for Aetna because they were worried about Amazon?

Stay up-to-date on Amazon by clicking below...

The Journal of Healthcare Contracting announces nine Supply Chain Leaders of the future!

Meet tomorrow’s supply chain leaders. The  Journal of Healthcare Contracting  asked for nominations of young people with the energy, dedication and courage to shape tomorrow’s healthcare supply chain.

If you read this I think you will agree with me that the Supply Chain is in good hands!

Scott Caldwell CEO of The Resource Group on supplying Ascension Healthcare
Scott Caldwell was interviewed for The Good Day Ascension podcast series. The interview was originally aired earlier this year and it gives great insight into Scott Caldwell's vision for The Resource Group (TRG).

Some facts about TRG size and scope:

  • $7.7b in supply spend
  • Manages:
  • 70m square feet of space
  • 1m annual courier visits
  • 1m annual PO lines
  • 4m Supply Chain labor hours

I think you will find fascinating his philosophy on negotiation and change management.

He is also strikingly candid about what a vendor's role is in serving Ascension. He also tells suppliers exactly what to expect when you meet with him!

This podcast is a must listen!

Chris Torres and Main Line Health's "systemized" approach to product selection
A new Navigant study says the US Healthcare Supply Chain can be decreased 18% or $23b without reducing quality. Navigant suggests the following four tactics could achieve this:
  1. Engage Physicians
  2. Consolidate Suppliers
  3. Optimize Utilization
  4. Automate Technology

I know you are rolling eyes right now and your thinking "yeah right, I have heard this before" but before you check out you would be well served to read how Chris Torres is getting results at Main Line Health.

Chris is one of the Journal of Healthcare Contracting's 10 People to watch and a real rising star in the Supply Chain ranks.

Look for an upcoming interview I did with her on Healthcare Supply Chain Radio. She is passionate, insightful and is getting results!

Shortages from Puerto Rico loom large...
I really enjoy following the NFL and follow many people on Twitter trying to stay up-to-date. Chris Mortensen is one of the best analysts and is in the fight of life with cancer. It made me sad to see his tweet a couple days ago.

I find it too easy talking about Supply Chain and forgetting the patients at the very end of that Supply Chain. When I saw Mort's tweet it really struck a nerve.

I hope everybody can just slow down every so often and remember this is not just about sales, units, savings, utilization and conversions. It is about healing too...

In last week's edition of NAW we discussed product shortages as a result of hurricane damage to Puerto Rico and here is just one example of it impacting a patient.
From the Lobby!
From the lobby is our weekly survey question! Please participate!

Last week we surveyed readers the following question:

What is the single most frustrating aspect of your interaction with contracting entities such as GPOs, IDNs and RPCs?

Survey Says!

39% Driving performance/compliance
31% Constant leverage from GPO/IDN/RPC
15% GPO/IDN/RPC says one thing and does another
8% Maintaining pricing integrity/parity
7% Arduous terms and conditions

Pretty interesting results to say the least. All the angst I sensed around T&Cs made me think that would rank higher. I also thought pricing was a bigger issue as I always hear " The GPO demands the best price and then the IDN wants it even lower, locally."

I was certainly glad to see only 15% of respondents felt the contracting agents said one thing and acted differently!

This weeks survey asks about risked based contracting!

2017 National and Corporate Account Executives compensation report now available!
The Journal of Healthcare Contracting  recently conducted a survey on National and Corporate Account Executives compensation plans in 2017.

The results of this study allow you to compare compensation packages with peers in relation to the area of responsibility and job title.

This report will show you average salary by:
  • Title
  • Area of responsibility (by organization or geography)
  • Number of IDNs/GPOs/RPCs covered
  • Number of states covered
  • Employer revenue
  • Type of employer (Pharma, Med/Surg, Physician Preference, Lab, Services)
  • Number of direct reports

You can purchase this report using the button below, or for more information, contact Anna McCormick at 770-263-5280.


One of our own...giving back in a big way!
National Account Executive Carl Meyer has been giving back in a big way for the last ten years! Carl gives up his 4th of July every summer to raise funds to help Veterans find employment after their service to our country.

Ten years later his accomplishments are impressive:
  • Cumulative holes played – 1,341
  • Cumulative funds raised – $665,000 +

Having known Carl for many years I continued to be very impressed with the countless hours he gives to Hire Heroes USA.

I just love seeing him blend his love for golf and the USA to make our country a little more welcoming to those that serve for our freedom.

I think you'll enjoy the full article below.


People in the news and on the move!

Matt Gattuso joins AngioDynamics as Senior Vice President/General Manager

Stewart Hackney is now Director GPO National Accounts for Merck

Robin Lincoln promoted to Senior Vice President, Contracting Operations at Capstone Health Alliance

Feel free to share!
I hope you enjoyed this issue of National Accounts Weekly. Please send me what you think of this newsletter and if you have news you’d like to be included in the next issue!

John Pritchard


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